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Industrial Landscapes

Industrial Landscapes. Why Are Location Factors Changing?. Renewed attraction of traditional industrial regions Proximity to skilled labor Fordist , or mass production – labor intensive industries Post- Fordist , or lean production – High Tech Industry. Industrial Areas in North America.

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Industrial Landscapes

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  1. Industrial Landscapes

  2. Why Are Location Factors Changing? • Renewed attraction of traditional industrial regions • Proximity to skilled labor • Fordist, or mass production – labor intensive industries • Post-Fordist, or lean production – High Tech Industry

  3. Industrial Areas in North America

  4. FORDIST CONSIDERATIONS LABOR IS PRIMARY CONSIDERATION Manufacturers seek lower wages

  5. Why Are Location Factors Changing? • Attraction of new industrial regions • Changing industrial distribution within MDCs • Interregional shift within the United States • Right-to-work laws (not required to join unions) • Textile production • Interregional shifts in Europe • Convergence shifts • Competitive and employment regions

  6. Why Are Situation Factors Important? • Proximity to inputs • Bulk-reducing industries • Examples: • Copper • Steel • Potato Chips • Pencils

  7. Why Are Situation Factors Important? • Proximity to markets • Bulk-gaining industries • Examples: • Fabricated metals • Beverage production • Single-market manufacturers • Perishable products

  8. Why Are Situation Factors Important? • Ship, rail, truck, or air? • The farther something is transported, the lower the cost per km/mile • Cost decreases at different rates for each of the four modes • Truck = most often for short-distance travel • Train = used to ship longer distances (1 day +) • Ship = slow, but very low cost per km/mile • Air = most expensive, but very fast

  9. Weber’s Model of Industrial Location – Locational Triangle Main Factors include: DISTANCE to RAW MATERIALS to FACTORY DISTANCE to FACTORY FROM MARKET PRIMARY CONSIDERATION = TRANSPORATION COSTS

  10. Why Are Site Factors Important? • Land • ~Rural sites • ~Environmental factors Capital

  11. POST-FORDIST CONSIDERATIONS aka High Tech Industry Tends to locate in agglomerations of similar firms Access to similar forms is important – more innovation SPECIALIZED LABOR MARKET Need for specialized services & inputs Transportation not a consideration TRANSACTION COSTS ARE

  12. This all created a new “RUST-BELT, SUN-BELT” geography in the USA during the 1970’s and early 1980’s. RUST BELT - old manufacturing belt SUNBELT – New high tech and service economy agglomerations: CA, AZ, CO, FL

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